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1- . Wolfo Inc. hired you as a consultant to help them estimate its cost of equity. You are given the following information: * a.
1- . Wolfo Inc. hired you as a consultant to help them estimate its cost of equity. You are given the following information: *
a. 12.25%
b. 12.80%
c. 12.93%
d. 13.50%
e. 14.50 %
2-
. Using the same given in the previous question, The Overall cost of equity raised by retained earnings using the midpoint method is: *
a. 12.5%
b. 13.0%
c. 13.5%
d. 14.0%
e. 14.5%
The cost of equity using the CAPM approach is: rs = 12.5% The cost of equity using the Bond-Yield-plus-Risk-Premium Approach is: 1s= 13.5% The cost of equity using the DCF approach is: rs = 12.8% The Overall cost of equity raised by retained earnings using the average method isStep by Step Solution
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